Debt Avalanche vs Snowball Calculator

See how much interest you save and how many months faster you pay off debt with each strategy.

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Interest saved (avalanche vs snowball)

$0.00

Avalanche saves this vs snowball.

Detailed results
Avalanche payoff (months)46
Snowball payoff (months)46
Avalanche total interest$4,386
Snowball total interest$4,386
Months faster (avalanche)0

What this result means

Interest saved (avalanche vs snowball): $0.00.

For these debts, both strategies produce the same payoff time and total interest.

Monthly Payoff Schedule

Balance remaining each month for the avalanche strategy.

Monthly Payoff Schedule. 47 rows, first 12 shown.
MonthDebt 1 BalanceDebt 2 BalanceTotal Balance
1$7,733$14,794$22,527
2$7,462$14,586$22,048
3$7,186$14,377$21,564
4$6,906$14,167$21,073
5$6,621$13,956$20,577
6$6,331$13,743$20,074
7$6,037$13,529$19,566
8$5,737$13,313$19,051
9$5,433$13,097$18,530
10$5,124$12,879$18,002
11$4,809$12,659$17,468
12$4,489$12,438$16,927

How this is calculated

Avalanche: direct extra payment to highest-rate balance. Snowball: direct extra payment to lowest balance. Monthly interest = balance × rate/12.

Two popular frameworks exist for paying down multiple debts: the avalanche and the snowball.

Avalanche (mathematically optimal). Direct all extra payments to the highest-interest-rate debt while making minimums on others. When it's paid off, roll that payment to the next highest-rate debt. This minimizes total interest paid — the highest-rate debt is the most expensive dollar-for-dollar, so eliminating it first saves the most money.

Snowball (psychologically driven). Target the smallest balance first, regardless of interest rate. The quick win of eliminating an account can build momentum and motivation — studies suggest some people are more likely to stay on track when they experience early victories.

When do they produce the same result? If all debts have the same interest rate, or if you only have one debt, both strategies are identical.

The real cost of the snowball. In most scenarios with different interest rates, the avalanche saves both interest and time. The snowball's cost is the extra interest paid by ignoring the high-rate debt while focusing on a lower-rate small balance.

Combining strategies. Some people use a hybrid: pay off the smallest balance first if it's close to elimination (e.g., 2–3 months away), then switch to avalanche discipline for the remaining debts.

Assumptions

  • Interest accrues monthly (monthly rate = annual rate ÷ 12).
  • Minimum payments remain fixed throughout the payoff period.
  • No new charges are added to either debt.
  • The full minimum payment is applied each month before extra payments.
  • Simulation caps at 50 years (600 months) to prevent infinite loops.

Frequently asked questions

Which method pays off debt faster?

The avalanche method almost always pays off debt faster and with less total interest. The snowball may take longer if the smallest balance has a lower rate than other debts.

Does the snowball method cost more?

Usually yes — by ignoring higher-rate debts, you let expensive interest accrue longer. The difference can range from negligible to thousands of dollars depending on balances and rate spreads.

What if I can barely make minimums?

Focus on making all minimum payments first to avoid late fees and credit damage. Even a small extra amount ($25–50/month) directed at the highest-rate debt accelerates payoff significantly.

Should I include student loans?

Yes. Add each loan as a separate debt with its own balance, rate, and minimum. If IDR is the better fit for your income, see the income-driven repayment comparison calculator.

What about balance transfer cards?

A 0% intro-rate balance transfer can reduce interest to zero during the promotional period. Model it as a debt with 0% rate for the promo term — the snowball and avalanche converge when rates are equal.

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